PROPOSALS FOR IMPROVEMENT OF ETHICAL STANDARDS IN THE FEDERAL GOVERNMENT INCLUDING ESTABLISHMENT OF A COMMISSION ON ETHICS IN GOVERNMENT

-Ordered to be printed

Mr. DOUGLAS, from the special subcommittee of the Committee on Labor and Public Welfare, submitted the following

REPORT

The subcommittee of the Labor and Public Welfare Committee, to which was referred the resolution (S. Con. Res. 21) to establish a Commission on Ethics in the Federal Government, held hearings and received testimony, both oral and written, from a broadly representative group of distinguished witnesses. Many proposals were made in these hearings which, in the subcommittee's opinion, were of such value as to warrant their submission to the full committee and to the Senate for their information. This report is presented to accomplish that objective.

PART I. SUMMARY OF RECOMMENDATIONS

1. A COMMISSION ON ETHICS IN GOVERNMENT

A Commission on Ethics in Government should be established by joint resolution of Congress. The Commission's function should be twofold, the first to investigate and report to the President and to the Congress on the moral standards of official conduct of officers and employees of the United States; the effect thereon of the moral standards in business and political activity of persons and groups doing business with the Government or seeking to influence public policy and administration; and the moral standards generally prevailing in society which condition the conduct of public affairs or which affect the strength and unity of the Nation. The Commission's inquiry should focus primarily on the legislative and executive branches, but should not exclude the administration of justice, federally supported activities of the States, and such ideas, attitudes, habits, practices, and standards of American society as are relevant to the Commission's functions.

The second function of the Commission should be to recommend measures to improve and maintain at a high level moral standards of official conduct in the Federal Government and of all persons who participate in or are responsible for the conduct of public affairs. It should be noted that the Commission would not be concerned with the morals of individuals-governmental personnel or private citi zens-except as they are involved in the conduct of public affairs. The Commission should consist of 15 members, 5 appointed by the President, 5 by the President of the Senate (i. e., the Vice President), and 5 by the Speaker of the House. All members should be persons of recognized integrity, judgment, and experience in public or civic affairs. Of the members appointed by the President, two should be public employees, one a career civil servant holding a posi tion not above GS-16, and one holding an office of higher rank. Of the members appointed by the President of the Senate and Speaker of the House, in each case two should be Members of the respective legislative body of the appointing officer, one a Democrat and one a Republican.

The Commission should have power to hold hearings and secure testimony and evidence, authority to employ staff, and funds to carry on its work. It should have 2 years in which to complete its investi gation and report, but should place its major recommendations before the President and Congress during the first session of the Eightythird Congress. It should terminate 30 days after submitting its final

report.

This recommendation is embodied in Senate Joint Resolution 107. which has been reported favorably by the Labor and Public Welfare Committee and is printed in section A of the appendix to this report.

2. AMENDMENTS TO THE ADMINISTRATIVE PROCEDURE ACT The Administrative Procedure Act should be amended to provide that the following practices shall be improper for Federal officials and employees and shall be grounds for summary dismissal from the

Federal service:

(a) Engaging in any personal business transaction or private ar rangement for personal profit which accrues from or is based upon the official position, authority, or confidential information of the official or employee.

rectly from any person or organization' with which the official or (b) Accepting any valuable gift, favor, or service directly or indi employee transacts business for the Government.

(c) Discussing future employment outside the Government with person or organization with which there is pending official business. confidential character to unauthorized persons or releasing such infor (d) Divulging valuable commercial or economic information of s

mation in advance of its authorized release date.

luncheons, dinners, parties, or other expensive social engagements (e) Becoming unduly involved, for example, through frequent with persons outside the Government with whom they do official

business.

The Administrative Procedure Act should be amended to prohibit Federal officials who participate in the making of loans, granting of subsidies, negotiation of contracts, fixing of rates, or the issuance of

valuable permits or certificates from acting in any official transaction or decision which chiefly concerns a person or organization by which they have been employed previously in the preceding 2 years or with which they have a valuable economic interest. Any violation of this prohibition should be grounds for summary dismissal.

The Administrative Procedure Act should be further amended:

(a) To provide that former Federal officials and employees shall not appear before agencies in which they were formerly employed in cases which they previously handled or of which they had some direct knowledge as Federal officials or employees and that they shall not participate in the preparation of such cases.

(b) To provide that for a period of 2 years following their termination, Federal officials and employees of the ranks GS-15 and above who leave the Government shall not appear before the Federal agencies in which they were formerly employed as the representative of a person or organization doing business with the Government.

The penalties of disbarment from practice before a Federal agency and of cancellation of contract in appropriate cases should be authorized to discourage those who would corrupt as well as those who allow themselves to be corrupted. Publicity for findings of improper practices would serve as a further deterrent.

These recommendations are embodied in S. 2293, printed in section B of the appendix to this report.

3. MANDATORY DISCLOSURE OF INCOME, ASSETS, AND CERTAIN TRANSACTIONS

Legislation should be enacted requiring all Members of Congress, all Federal officials receiving a salary of $10,000 or more, or who are in positions of GS-15 and above, or of equivalent rank, and the principal officials of national political parties to disclose their incomes, assets, and all dealings in securities and commodities. The disclosures should be made by filing reports with the Comptroller General on forms provided by him to show income by source and amounts and to identify assets and show their value. These reports should be annual.

The revelation of such information will tend to deter individuals from accepting any income, holding any assets, or making any transactions which they believe are questionable. It will encourage public officials and political leaders to judge their own conduct with greater care. It will also provide for the public and for the great majority of such public servants and party officials whose actions and motives rise above personal considerations, the strong ground of truth on which to stand against unfair charges and innuendo.

S. 2284, which has been drafted along the general lines of the Morse bill, S. 561, will give effect to these recommendations. It has been printed in section C of the appendix to this report.

4. THOROUGH STUDY OF PROPOSED CHANGES IN CRIMINAL LAW

The laws governing conflicts of interest and bribery should be amended to correct inconsistencies, close loopholes, and extend their coverage. The proposed amendments, which the subcommittee recommends for thorough study by executive agencies and appropriate congressional committees and which are set forth in the appendix to

this report, would if enacted effect changes which can be made quickly and which are obviously needed. This action should not preclude a more exhaustive examination of the law governing illegal practices by the Commission on Ethics in Government and more extensive revision which the Commission may recommend.

5. CREATION OF A CITIZENS' ORGANIZATION TO WORK FOR BETTER GOVERNMENT ON THE NATIONAL LEVEL

Congress should encourage private citizens to establish a nonparti san, national citizens' organization to formulate suggestions and sup port affirmative programs for the improvement of Government service. The successes of many reforms in local and national Government stem from the activity of well-organized citizens' groups. To win public understanding of the recommendations of a Commission on Ethics and to serve as an effective watchdog over the administration of approved measures, such a national organization can be a most effective force.

6. MEASURES MERITING ADDITIONAL STUDY AND CONSIDERATION

In addition, certain measures have been proposed which have merit, but which should be further studied before action is taken. They can appropriately be considered by the Commission recommended above, by other committees of the Congress, or by other authorities. Among these measures are the following:

(a) The proposal that a Court of Ethics be established to hear complaints regarding improper practices of public officials, and to investigate and make public reports. It has been suggested that such a court would consider carefully defined practices not subject to prosecution under criminal law or to other normal legal processes and not adequately remedied by the governmental body in which they occurred. The standards to be applied by the court would require careful formulation. should consist of rotating panels of retired judges, administrators, It is proposed that this supplementary tribunal officers of the Armed Forces, and former legislators drawn from s larger list of such persons appointed by the President, by and with the advice and consent of the Senate. Reports and recommendations following the hearings of complaints against Government officials and Members of Congress would be published in the Federal Register or Congressional Record. It is the objective of the proposal that the ordinary citizen have recourse to a simpler procedure to secure redress against improper practices of Government officials which endanger

his or the public's interest.

(b) Revision and extension of legislation governing corrupt prac tices in elections and lobbying. Some of these statutes were enacted a long time ago; they were no more than first steps, which have not

been followed up.

(c) Provision of public financial assistance for candidates in election

campaigns.